Faculty & Research
Exemption Under the Fair Labor Standards Act
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Vol 42 No 5
By: Jeffrey D. Pollack
Executive Summary: As an employer, you undoubtedly know that the Fair Labor Standards Act (FLSA) requires an employer to pay an employee overtime after 40 hours of work per week. You also know that the FLSA contains certain overtime exemptions, including what some refer to as the "white-collar exemption." The FLSA, however, does not actually contain a white-collar exemption as such. Rather, the statute exempts persons "employed in a bona fide executive, administrative, or professional capacity." Failure to pay proper overtime can result in liability for the unpaid overtime and an equal amount in liquidated damages (plus attorneys' fees). Given that possible outcome, misclassification of employees is a growing area for class-action litigation. Understanding the administrative and executive exemptions to the wage-and-hour laws, therefore, is crucial for proper human-resources management. This article will explain the executive and administrative exemptions, and then examine the remedies available to misclassified employees.
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- Exemption Under the Fair Labor Standards Act By: Jeffrey D. Pollack
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